Taiwanese memory producer Nanya Technology reported NT$2.59 billion (US$80 million) in revenue for September, reflecting a 5.12% year-on-year decrease and a 7.76% monthly drop, pressured by weak consumer demand in China and intensified price competition. Third-quarter revenues fell 18.03% from the previous quarter to NT$8.13 billion (US$252 million), reversing three consecutive quarters of growth. Despite these recent declines, Nanya’s cumulative revenue for the first nine months of 2024 rose 30.06% year-on-year to NT$27.56 billion (US$853 million).
Rising production costs from recent power outages have squeezed profitability, delaying a return to profitability until at least late 2025, according to market analysts. The company, which derives 60-65% of its revenue from consumer DRAM, is particularly vulnerable to low-end DRAM demand fluctuations. Strong recent demand for high-bandwidth memory (HBM) and DDR5 contrasts with slower growth for Nanya’s mid-range DRAM products.
Looking to Q4, Nanya expects a modest uptick in shipments, driven by demand for Wi-Fi 7 products and TV SoCs, though pricing pressure on DDR3 will likely persist as clients shift to DDR4. Nanya, which holds a modest 2-3% global DRAM market share, aims to leverage its niche product portfolio but faces stiff competition from larger rivals Samsung, SK Hynix, and Micron.
